A. a colluding industry
B. a merged industry
C. a concentrated industry
D. a natural monopoly
Economics Mcqs
A price- and quantity-fixing agreement is known as?
A. price leadership
B. price concentration
C. collusion
D. game theory,
In which of the following circumstances would a cartel be most likely to work ?
A. The market for copper, where there are very few producers and the product is standardized.
B. The fast-food market where there are a large number of producers but the demand for fast food is inelastic
C. The coffee market where the product is standardized and there are a large number of coffee growers.
D. The automobile industry, where there are few producers but there is great product differentiation.
The kinked demand curve model of oligopoly assumes the elasticity of demand ?
A. in response to a price increase is less elastic than the elasticity of demand in response to a price decrease
B. is perfectly elastic if price increases and perfectly inelastic if price decreases
C. is constant regardless of whether price increase of decrease.
D. in response to a price increases is more elastic than the elasticity of demand in response to a price decrease
A market is defined as perfectly contestable if ?
A. entry to it and exit from it are both costless
B. entry to it and exit from it are both costly
C. entry to it costless, but exit from it is costless
D. entry to it is costly, but exit from it is costless
In contestable markets large oligopolistic firms end up behaving like ?
A. monopolistically competitive firms
B. a cartel
C. perfectly competitive firms
D. a monopoly.
If one person’s consumption of a good diminishes other people’s use of the good, the good is said to be ?
A. rival
B. a good produced by a natural monopoly
C. a common resource
D. excludable
A private good is ?
A. rival but not excludable
B. not rival but excludable
C. both rival excludable
D. neither rival nor excludable
A common resource is ?
A. not rival but excludable
B. both rival and excludable
C. rival but not excludable
D. neither rival nor excludable
Suppose each of 20 neighbours on street values street repairs at €3000 the cost of the street repair is €40,000 which of the following statements is true ?
A. it is efficient for the government to tax the resident €2,000 each and repair the road
B. It is efficient for each neighbour to pay €3,000 to repair the section of street in front of his/her home
C. None of these answers are true
D. it is not efficient to have the street repaired